Highlights compared with same period in 2009:
- Revenue down by 7.5%
- Earning per share down by 76% (prior to exceptional charges)
- A before tax loss of £6.1 million (H1 2009: Profit £69.0 million) After exceptional UK restructuring charge of £15.8 million
- Workstation increase of 1.8% to 176,760
- 44 new centers opened
- Businessworld - increase of 111% to 475,896 members ( 127% increase in revenues from 2009)
- Cash generated from operations (before exceptional items) £47.1m* (H1 2009: £62.2m)
- Net cash at £224.2m (H1 2009: £229.5m)
- Interim dividend up 6% to 0.85p per share (H1 2009: 0.8p)
Commenting on today's announcement Mark Dixon, Chief Executive Officer of Regus plc, said:
"Despite the challenging trading environment I am pleased that we continue to generate cash, deliver cost savings and open new centres on attractive deals. While the market remains difficult to predict, we remain committed to our strategy of restoring our margins by both driving up our revenues and progressively reducing cost while continuing to maximise growth opportunities as changes in how and where we work evolve."
The good news for Regus is that they have cash, £224.2m, to continue their expansion plans which are to "open a centre per day over the remainder of the year." According tot he report Regus is focused on reducing risk through variable rent arrangements that combine operational flexibility for both landlords and for Regus - minimizing risks inherent with longer, more conventional leases.
The really bad news is that their stock prices have plummeted:
The bottom line is that Regus is suffering along with the rest of the worldwide commercial real estate market.Executive Suites , Flexible Workspace